Unless someone is profiting from mods, which at least right now is definitely not the case, I don't see how this hurts Larian or WOTC. The opposite is true. People actually making changes to the game that Larian can't or won't do, and thus improving it for people who wish it. It's a win win situation
The modders may not profit, but if WOTC were to lose profits as a result of free content elswhere, they would have every right to issue a cease and desist.